Sun-Times Sold to Investment Group
By Chuck Sudo in News on Dec 22, 2011 3:50PM
Ownership of Sun-Times Media Group is changing hands yet again. Late yesterday it was announced that Wrapports LLC, a group led by media executive and former Newsday publisher Timothy Knight and technology venture capitalist Michael Ferro, Jr., bought STMG from its current owners for roughly $23 million.
STMG Chairman Jeremy Halbreich confirmed the sale and will also be stepping down from his position to make way for Knight. Knight told Sun-Times business columnist David Roeder, “This isn’t a newspaper acquisition. This is the creation of a technologically-enabled content company. The platform, the brands that the Sun-Times has across Chicagoland are outstanding and unmatched.”
Other investors in Wrapports include Madison Dearborn Partners LLC Chairman John Canning Jr., Morningstar Inc. CEO and TimeOut Chicago owner Joe Mansueto, Grosvenor Capital Management L.P. CEO Michael Sacks, GTCR LLC Principal Bruce Rauner, and former Wrigley Co. scion William “Beau” Wrigley Jr.
Halbreich said that selling STMG wasn't officially for sale, but was in the back of his mind since the passing of former CEO James Tyree, who died in March from an accidental air embolism related to dialysis catheter removal. Tyree had also been battling stomach cancer for years.
"Since Jim passed away, one of my principal concerns was ensuring that the company passed into the right set of hands," he said. "I came in on an assignment to try to save the newspaper, and it evolved into something more. This just makes perfect sense for everybody."
Robert Feder notes this is the fifth sale of the Sun-Times in 28 years. Feder also reported that Halbreich ordered Sun-Times editors to not disclose the sale for 24 hours, despite the Tribune and Crain's being on the story.